US Grain Exports Continue to Recover

Published Sep 30, 2021

US soybean shipments spiked in September 2021, reaching a six-month high, and corn exports rose to the highest in a month as Louisiana Gulf Coast terminals steadily ramped up operations interrupted a month ago by Hurricane Ida. The US is a key grains supplier, and the damage caused by the storm could heavily impact the industry.

Major grain suppliers continue to recover from damage caused by the storm

The pace of grain exports has been lower than expected for this time of year. Some terminals remain shuttered, and others are running at below full capacity, following the destruction of facilities and the wrecking of the region’s power grid by the storm. Hurricane Ida crippled grain exports weeks before the Midwestern harvest and the busiest period for the US’s crop shipments, causing export prices to soar.

According to Archer-Daniels-Midland Co, a leading grain merchant, its Ama and Reserve, Louisiana terminals and mid-river loading rigs became fully operational this month, and its facility in Destrehan should recover by October. The two terminals that suffered the most damage belonged to Cargill Inc.

Damaged power lines due to the effect of hurricane Ida ripped on Grand Isle, Louisiana, U.S. (Source: Reuters)

Market Outlook

According to USDA grain inspections data, an early indicator of exports, 11 export ships were loaded with soybeans, sorghum, or wheat at facilities along the lower Mississippi River in the week ending on Sept. 23. The number of vessels is an increase compared to the seven loaded a week earlier but significantly below the same week in 2020 when 24 ships were loaded for export at the most active US grains hub. US corn inspections at all of the country’s ports equaled 517,539 tonnes last week, a 37% reduction from the same week a year ago, while soybean inspections dropped by 66% to 440,742 tonnes.

According to the USDA, during the first month of the 2021/22 marketing year that began Sept. 1, corn inspections remain below 50% of last year’s pace, and soybean inspections are at about 20% of the previous year’s rate. According to Refinitiv Eikon shipping data, on Sept. 20, approximately 11 bulk vessels were docked and loaded at Louisiana Gulf Coast elevators, and about 60 more were lined up along the Mississippi River and waiting to load.